Vietnam is rapidly positioning itself as a renewable energy hub in Southeast Asia, driven by its substantial development potential and ambitious goals for emission reduction and green economy growth, said Kitty Bu, vice-president for Southeast Asia at the Global Energy Alliance for People and Planet (GEAPP).

Speaking to Tuoi Tre (Youth) newspaper, Bu highlighted Vietnam's abundant renewable energy resources, particularly in wind and solar power, coupled with advancements in battery energy storage systems (BESS).

These factors have placed the country at the forefront of Southeast Asia’s energy transition.

Bu noted Vietnam's ambitious goal of increasing the green economy's contribution to GDP to US$300 billion by 2050 from $6.7 billion in 2020, aligning with global energy transition trends and creating significant business opportunities for multinational energy corporations.

According to the International Renewable Energy Agency, Vietnam’s installed solar power capacity, which reached 17GW in 2023, is nearly double the combined capacity of all other ASEAN nations, underscoring the country's leadership in renewable energy development.

To fully leverage its renewable energy potential, Vietnam needs substantial investments, estimated at $135 billion by 2030 and up to $511 billion by 2050, Bu said.

These investments are essential for developing sustainable infrastructure, modernizing the national grid, expanding energy storage solutions, and supporting sustainable livelihoods, she emphasized.

She spotlighted Vietnam’s proactive approach in attracting investors through key initiatives such as the National Green Growth Strategy for 2021-30, Power Plan 8, and its participation in the Just Energy Transition Partnership (JETP) agreement.

These measures demonstrate the country’s readiness to welcome clean energy investment and underscore its commitment to green growth.

Vietnam’s government policies and international partnerships have become critical in drawing clean energy investors worldwide, Bu added.

GEAPP is actively supporting Vietnam’s energy transition, including assisting in the implementation of the JETP agreement and initiating a BESS pilot project aligned with Power Plan 8. The project aims to cut carbon emissions while ensuring national energy security.

In an interview with Tuoi Tre, British Consul General in Ho Chi Minh City Alexandra Smith underlined the UK's commitment to supporting Vietnam in achieving its net-zero emissions target by 2050.

“Through its net-zero commitment, Vietnam has positioned itself as a regional leader in sustainable development and an ideal destination for green investment,” Smith stated.

She highlighted the UK’s role as a partner of Vietnam in the JETP agreement, alongside the U.S. and the EU.

Together, these partners have pledged to mobilize up to $15.5 billion from international partners and the private sector to fund renewable energy projects, enabling Vietnam to reduce its reliance on coal and meet its emissions target.

Similarly, Dutch Consul General in Ho Chi Minh City Daniel Stork reaffirmed the Netherlands’ and Europe’s dedication to supporting Vietnam’s green transition.

“The Netherlands has been involved in numerous projects in Vietnam, including a significant wind farm project in [southern] Tra Vinh Province valued at €17 million [($17.7 million],” Stork noted.

Both diplomats underlined the importance of international collaboration in advancing Vietnam’s energy transition and sustainable development goals.

Netherlands investors will continue to engage in similar green projects in Vietnam, including solar energy plants in industrial parks where many Dutch companies are headquartered.

France also has many companies participating in the Vietnamese energy market, including Green Yellow Vietnam, which has been operating in Vietnam since 2020.

The company has installed 1.2 million square meters of photovoltaic panels, providing enough energy for 8,300 homes per year and thereby reducing emissions by 147,000 tonnes of CO2, equivalent to planting 3.3 million of trees.

In May, Myriam Ferran, deputy director general of the European Commission's Directorate General for International Partnerships, visited the Bac Ai pumped storage hydropower project in south-central Ninh Thuan Province, which is funded by the French Development Agency, European Investment Bank, Japan International Cooperation Agency, and German Reconstruction Bank. 

Stressing that this is a key project in the EU's Global Gateway strategy, Ferran said that the EU and its member states are committed to providing preferential loans and aid packages to this pumped storage hydropower project, the first of its kind in Vietnam.

Like us on Facebook or follow us on X to get the latest news about Vietnam!